02-02-2008, 04:44 AM
Other than the obvious monopoly, one reason frequently given for our high cost of electricity is the lack of connection to an interstate (or even interisland) grid. This prevents bringing in power for peak usage periods from other regions and forces HECO and its subsidiaries to have reserve generating capacity on every island that is infrequently used. They also claim that the fragmented nature of the small individual island grids prevents ecomomies of scale in power plant construction, distribution networks, etc. Some of this is legitimate and some is not, IMHO.
It should also be noted that state utility regulatory law guarantees HECO, et al., a profit on their investment regardless of how badly they manage their monopoly. This is supposedly to protect them from going bankrupt and leaving us without a power producer. Yeah, right.
As far at the geothermal and wind energy projects, the State guys keep telling us that they they guarantee the producers the same rates as HELCO gets because they would not come here otherwise. It does not take a very cynical person to think that protecting the good old boys at HELCO from competition is a big reason for this. And so it goes on and on.
Cheers,
Jerry
It should also be noted that state utility regulatory law guarantees HECO, et al., a profit on their investment regardless of how badly they manage their monopoly. This is supposedly to protect them from going bankrupt and leaving us without a power producer. Yeah, right.
As far at the geothermal and wind energy projects, the State guys keep telling us that they they guarantee the producers the same rates as HELCO gets because they would not come here otherwise. It does not take a very cynical person to think that protecting the good old boys at HELCO from competition is a big reason for this. And so it goes on and on.
Cheers,
Jerry